- The Magic acquired Serge Ibaka on draft night and they hope the big man can help lead them back to the playoffs, however, Lang Greene of Basketball Insiders is pessimistic about Ibaka’s chances of having a strong 2016/17 campaign. Greene notes that Ibaka’s production, including his points, rebounds and blocks per game, has decreased over the past several seasons. His field goal percentage has also dwindled, going from 57.3% during the 2012/13 season to 47.9% last year.
- On the other end of the spectrum, the Trail Blazers sent just $75K to the Magic to acquire Shabazz Napier in July, per Pincus (Twitter link). Orlando no longer had use for Napier, so the team was willing to move him in exchange for the minimum amount of cash a team can receive a deal — $75K.
As our list of 2016 offseason trades shows, five of the deals agreed upon on draft night this year featured one team sending cash to the other. The NBA’s Collective Bargaining Agreement allows clubs to include cash payments, but only up to a certain amount.
In the 2016/17 league year, teams are allowed to receive a total of $3.5MM in trades, and can also send out $3.5MM in trades. Those limits are separate, so a team that sends $3.5MM in a deal and then later receives $3.5MM doesn’t get a fresh, new slate — that club is capped out for the league year. In 2014/15, the limit for cash sent and received in trades was $3.4MM.
Since the league year ends on June 30, teams that hadn’t taken advantage of those cash allowances earlier in the season will often use remaining cash during the draft to move up or to snag an extra pick. Many of the cash details on those draft-day deals for 2016 were previously reported. For instance, we already knew about the following payments:
- Warriors sent $2.4MM to Bucks to acquire No. 38 overall pick (Patrick McCaw).
- Trail Blazers sent $1.2MM (and a 2019 second-round pick) to Magic to acquire No. 47 overall pick (Jake Layman).
- Cavaliers sent approximately $2.5MM to Hawks to acquire No. 54 overall pick (Kay Felder).
Based on those numbers, it appears the Warriors got a much better deal from the Bucks than the Cavaliers did from the Hawks. Of course, if the Cavs badly wanted Felder, the cost to move into the draft was hardly exorbitant — Atlanta likely asked the Cavs for the maximum amount of money they could send, since Cleveland used over $900K in a separate trade earlier in the year.
In addition to those three swaps, two other draft-night deals featured money changing hands, and Eric Pincus of Basketball Insiders has the details on those payments, along with several others from the 2015/16 league year. According to Pincus, these are the details on the other two draft trades involving cash:
- Nets sent $3MM (and the No. 55 overall pick) to Jazz to acquire No. 42 overall pick (Isaiah Whitehead).
- Thunder sent $730K to Nuggets to acquire No. 56 overall pick (Daniel Hamilton).
Once again, one of these deals looks far more favorable than the other, with the Thunder paying a fraction of what the Nets did for a second-round pick. But again, the available players and interested teams essentially set the market for these cash payments.
In the case of the Nets/Jazz deal, Brooklyn clearly wanted to make sure not to miss out on Whitehead, and the team was willing to pay a relatively significant amount to secure him. The Thunder, meanwhile, offered all their available remaining cash to the Nuggets for the 56th pick, and Denver likely had no better offer and no player targeted at that spot — so the Nuggets took what they could get.
Be sure to check out Pincus’ piece at Basketball Insiders for more thorough details of how teams spent and received cash in trades during the 2015/16 league year.
- The Magic can offer an extension to newly acquired power forward Serge Ibaka, writes Bobby Marks of The Vertical. Ibaka, whom Orlando picked up in a draft-night deal with the Thunder, is about to enter the last season of a four-year, $49MM extension he received from Oklahoma City. Ibaka would be limited to a 4.5% raise from his $12.2MM salary in the first year of an extension because the Magic are over the salary cap, Marks notes, and because he has been traded in the past six months Ibaka can only have two years added to his contract.
- The Magic are close to naming Lakeland, Florida as the new home of their D-League affiliate, Steve Kyler of Basketball Insiders relays (on Twitter).
The NBA’s current Collective Bargaining Agreement is designed to give teams certain benefits when it comes to re-signing their own free agents. Many players who reach free agency, for instance, are permitted to get 7.5% annual raises from their own teams, while they can only get 4.5% raises from another team. More notably, Bird rights free agents can sign five-year contracts with their own teams, but can only go up to four years with other clubs.
In some cases, that extra year doesn’t make much of a difference. Al Horford left Atlanta for Boston and signed a four-year contract with the Celtics, even though there were reports suggesting the Hawks were open to going to five years (albeit not quite for the max). Kevin Durant signed with the Warriors on a two-year contract that he’ll likely opt out of after the first year in order to maximize his future earnings.
Still, for at least a handful of players, that five-year contract appears to have played a part in their decisions to return to their own teams. As our Free Agent Tracker shows, six free agents signed five-year deals this year, and all six of those contracts were worth at least $85MM. Three of them were maximum-salary pacts.
Here are those five-year contracts, which will run through the 2020/21 season:
- Mike Conley (Grizzlies): Five years, $152,605,578 (partial guarantee in year five)
- DeMar DeRozan (Raptors): Five years, $137,500,000 (player option in year five)
- Andre Drummond (Pistons): Five years, $127,171,313 (player option in year five)
- Bradley Beal (Wizards): Five years, $127,171,313
- Nicolas Batum (Hornets): Five years, $120,000,000 (player option in year five)
- Evan Fournier (Magic): Five years, $85,000,000 (player option in year five)
Although Conley drew significant interest from the Mavericks, he was always a favorite to return to the Grizzlies, and none of the other five players on this list were seriously linked to another suitor, which is interesting.
Drummond and Beal were restricted free agents who got max deals, so there was never any suspense about their destinations, but plenty of teams would have been interested in prying away DeRozan from the Raptors, Batum from the Hornets, or Fournier from the Magic. The fact that those players’ teams were willing to offer five years likely made negotiations much simpler, since no rival suitor could offer that fifth year.
A five-year contract provides additional long-term security for free agents, and also gives the team the opportunity to give the player some agency as well. In four of the six deals listed above, the contract features a fifth-year player option.
That means DeRozan, Drummond, Batum, and Fournier have a safety net for that 2020/21 season — if they’re still playing at a high level at that point, it might make sense to opt out and sign a new longer-term contract. If their production has slipped, or if they’re battling injuries, they’ll have the option of remaining in their current contract and collecting a big pay check in that fifth year.
The ability to offer an additional year to their own free agents hasn’t always prevented teams from losing top-tier players on the open market, but there are still plenty of instances where that fifth year seems to make a difference. As the CBA opt-out date nears and the NBA and NBPA explore potential changes to their current agreement, it makes sense for this aspect of the CBA to remain unchanged. That extra long-term security may not appeal to every marquee free agent, but it does give a player’s current team a leg up, which is crucial if the league is worried about potential imbalance.
- Serge Ibaka gives the Magic a much better defensive option against Eastern Conference counterparts LeBron James, Al Horford, Chris Bosh and Paul Millsap, as Brian Schmitz of the Orlando Sentinel breaks down in his latest column. Ibaka, who was acquired from the Thunder in a draft-night deal, provides the club with its first legitimate power forward in 15 years, Schmitz declares.
4:09pm: According to Brian Schmitz of The Orlando Sentinel (Twitter link), Rudez was invited to training camp but was not offered a contract.
12:41pm: Free agent Crotian forward Damjan Rudez appears set to join the Magic, according to Nikos Varlas of Eurohoops.com, who reports that Rudez and the Magic have agreed to terms on a contract. Terms of the deal aren’t known, but Varlas suggests that an official announcement should happen soon.
Rudez, 30, saw a decent amount of playing time in Indiana during his first NBA season in 2014/15, averaging 15.4 minutes in 68 regular-season contests for the Pacers. However, he was traded to the Timberwolves last July in a deal for Chase Budinger, and never carved out a consistent role in Minnesota last season. The Wolves declined their team option on his contract in June.
A three-time Croatian League All-Star, Rudez spent the first part of his basketball career playing overseas, and according to Varlas, several European clubs expressed interest in him this offseason. Assuming the Magic make things official though, it looks like the veteran forward will remain in the NBA for now.
Orlando doesn’t have a ton of outside shooting on its roster, particularly with Jodie Meeks‘ health in question, so Rudez should help provide some range, if he makes the regular-season roster. He has shot 39.1% from beyond the arc in his 101 NBA games.
Taking into account their cap limitations, the Magic could sign Rudez to a minimum-salary deal or to a contract using some or all of their $2.898MM room exception.
- A report in June indicated that the Magic were prepared to make Chauncey Billups one of the NBA’s highest-paid assistant coaches, but the former guard turned down the offer to join Frank Vogel‘s staff. Appearing on The Vertical’s podcast recently, Billups explained that he declined the job primarily for family reasons. “My second daughter has a couple more years of high school, so I didn’t really want to move away,” Billups said, per Vince Ellis of The Detroit Free Press. “It became more of a personal thing than just a coaching job. But it was a great opportunity.”
Over the next several days, we’ll be breaking down 2016 NBA free agent spending by division, examining which teams – and divisions – were the most active this July.
These divisional breakdowns won’t present a full picture of teams’ offseason spending. Some notable free agents, including LeBron James, remain unsigned, so there’s still money out there to be spent. Our lists also don’t include money spent on this year’s first- and second-round picks or draft-and-stash signings. There are a few free agent names missing in some instances as well, since those deals aren’t yet official or terms haven’t been reported.
Still, these closer looks at divisional spending should generally reveal how teams invested their money in free agency this summer, identifying which clubs went all-out and which ones played it safe.
With the help of our Free Agent Tracker and contract info from Basketball Insiders, we’ll focus today on the Southeast division. Let’s dive in…
1. Washington Wizards
- Total money committed: $239,223,166
- Guaranteed money committed (including player options): $234,026,744
- Largest expenditure: Bradley Beal (five years, $127,171,313)
- Other notable signings:
- Ian Mahinmi (four years, $64,000,000)
- Andrew Nicholson (four years, $26,000,000)
- Jason Smith (three years, $15,675,000)
- Notes:
- Marcus Thornton will earn $1,315,448 on a minimum-salary contract, but the Wizards will only pay $980,431 of that salary, with the NBA footing the rest of the bill.
2. Charlotte Hornets
- Total money committed: $197,549,753
- Guaranteed money committed (including player options): $187,517,567
- Largest expenditure: Nicolas Batum (five years, $120,000,000)
- Other notable signings:
- Marvin Williams (four years, $54,512,500)
- Ramon Sessions (two years, $12,270,000)
- Roy Hibbert (one year, $5,000,000)
- Notes:
- Brian Roberts will earn $1,050,961 on a minimum-salary contract, but the Hornets will only pay $980,431 of that salary, with the NBA footing the rest of the bill.
- Sessions’ deal contributes significantly to the gap between the Hornets’ total money and guaranteed money committed, since his second year ($6.27MM) is a team option.
3. Orlando Magic
- Total money committed: $197,000,000
- Guaranteed money committed (including player options): $197,000,000
- Largest expenditure: Evan Fournier (five years, $85,000,000)
- Other notable signings:
- Bismack Biyombo (four years, $68,000,000)
- D.J. Augustin (four years, $29,000,000)
- Jeff Green (one year, $15,000,000)
- Notes:
- The Magic have yet to add any camp invitees or players on partially-guaranteed deals, so the four players listed above make up the team’s entire free agent haul so far.
4. Miami Heat
- Total money committed: $186,713,810
- Guaranteed money committed (including player options): $175,347,388
- Largest expenditure: Hassan Whiteside (four years, $98,419,537)
- Other notable signings:
- Tyler Johnson (four years, $50,000,000)
- Wayne Ellington (two years, $12,270,000)
- Dion Waiters (two years, $5,926,410)
- Derrick Williams (one year, $4,598,000)
- Udonis Haslem (one year, $4,000,000)
- James Johnson (one year, $4,000,000)
- Notes:
- Like Sessions for the Hornets, Ellington’s second-year salary of $6.27MM is not guaranteed, which contributes to the gap between the Heat’s total money and guaranteed money committed.
5. Atlanta Hawks
- Total money committed: $151,929,151
- Guaranteed money committed (including player options): $150,530,431
- Largest expenditure: Dwight Howard (three years, $70,500,000)
- Other notable signings:
- Kent Bazemore (four years, $70,000,000)
- Malcolm Delaney (two years, $5,000,000)
- Kris Humphries (one year, $4,000,000)
- Notes:
- Jarrett Jack will earn $1,551,659 on a minimum-salary contract, but the Hawks will only pay $980,431 of that salary, with the NBA footing the rest of the bill.
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